A majority of the 63 members of the New York State Senate rarely agree, but there are 44 senators (and growing) supporting a necessary bill to exempt the unemployed from paying income tax on the unemployment benefits they have accumulated when COVID threw millions out of work last year.
Four million New Yorkers received unemployment benefits in 2020. Congress and President Joe Biden correctly exempted $ 10,200 of these funds from tax, and normally New York tax law would have automatically changed to comply with federal rule. But COVID times are not normal so it was up to Albany to act.
Albany’s failure to act in passing the state budget was in part due to uncertainty at the time as to whether states accepting the $ 350 billion COVID relief could cut taxes, but the Treasury Department has since said that this is okay.
Because of this, a majority of the ruling Senate Democrats, as well as almost every Republican, signed the bill drafted by Senator Simcha Felder. Majority leader Andrea Stewart-Cousins should consider the wishes of her conference and put the measure on the floor. We bet it would get 63 votes.
The estimated cost of $ 1.4 billion isn’t nothing, but the tax revenue is much higher than planned, and that’s why these people are in the Senate to find a way to do this work. Or would these elected politicians prefer to send a tax bill for hundreds of dollars to 4 million unemployed New Yorkers, many of whom are also voters?
The COVID delayed tax day is Monday May 17th. Meanwhile, the number of Senators sponsoring the bill keeps growing. Stewart cousins and their colleagues must bring Congregation Speaker Carl Heastie and Governor Andrew Cuomo to accomplish this.
No senator lost a paycheck during COVID, but many of their constituents sure did. Failure to comply with Congress and the exemption from benefits mean people have to pay. And they should blame the legislation.